OpenSky’s Initial Take on State of the State Address

OpenSky’s Initial Take on State of the State Address

Here’s our initial take on the governor’s speech from this morning:

OpenSky Policy Institute agrees that our tax code needs to be modernized and that we need to make sure that all sales tax exemptions are effective and make our tax system more fair, not less.  But shifting from an income tax base to a sales tax base will likely result in a majority of Nebraskans paying more in taxes, based on our analysis of Nebraska’s tax system and what has happened in other states.

Additionally, any comprehensive reform of our tax system should include a review of sales tax on services, and address the fact that property taxes are increasing at a rate faster than inflation, hurting Nebraskans across the state.

OpenSky Policy Institute also agrees that education should indeed be one of the state’s top priorities.  But the governor’s proposed budget doesn’t fully restore the cuts that have been made to k-12 education in recent years, which will impede our ability to maintain high quality schools, an essential ingredient for a prosperous Nebraska.

We look forward to seeing the details of the governor’s proposal.